HOUSTON, June 15 (Xinhua) -- The number of active drilling rigs in the United States fell by three this week to 1,059, but still 126 more than that this time last year, according to the weekly data collected by Baker Hughes released Friday.

The Houston-based oilfield services company Baker Hughes reported that oil drillers added one rig, but that was offset by a decline of four natural gas rigs. Now the number of active oil drilling rigs in the United States reaches 863, the highest level since March 2015.

The Permian Basin region of West Texas and New Mexico dominates drilling activity with 476 rigs, accounting for more than half the oil drilling rigs in the country.

Oil prices settled sharply lower on Friday as traders believed that the Organization of the Petroleum Exporting Countries (OPEC) and its allies will agree next week to boost output.

The West Texas Intermediate (WTI) for July delivery dropped 1.83 U.S. dollars to settle at 65.06 dollars a barrel on the New York Mercantile Exchange, while Brent crude for August delivery lost 2.50 dollars to 73.44 dollars a barrel on the London ICE Futures Exchange.